Cal. Code Regs. tit. 25 § 8119

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 8119 - Administrative Expenses

(a) Administrative expenses are those expenses incurred by the sponsor related to the planning and execution of the project prior to initial occupancy. Such expenses include, but are not limited to the following:

(1) salaries, wages, and related costs of the sponsor's staff engaged in the planning and execution of the project, including legal services, accounting and auditing relating to the sponsor's operations and obtaining financing for the project;

(2) travel costs and other general overhead costs which are attributable to the project;

(3) expenses for administrative services performed for the sponsor and paid for under third-party contracts.

(b) Administrative expenses do not include those legal, architectural, engineering, or financial fees which are directly related to the planning and execution of the project and which are incurred by the sponsor through third-party contracts eligible for funding pursuant to section 8114(b)(7) and (c)(12).

(c) Administrative expenses in amounts equal to or less than the maximum amounts shown in the following schedule shall be deemed reasonable and necessary upon certification by the sponsor that they have been incurred by the sponsor pursuant to this section.

Approved Program Loan Amount	Maximum Administrative Expenses
Up to $500,000	5% of the approved program loan amount

$500,000 or more	$25,000 plus 1% of the approved program loan amount over $500,000, up to a maximum of $50,000.

(d) Sponsors seeking program funds for administrative expenses in excess of the limits described in subdivision (c), shall include in their applications a statement of administrative expenses incurred to date, and a budget for anticipated administrative expenses. The statement and budget shall include sufficient detail and explanation to permit the department to determine eligibility and reasonableness of the expenses. The department shall include in the loan amount those administrative expenses shown in the statement and anticipated budget, provided it determines that those expenses are reasonable and necessary considering the nature and scope of the project.

(e) The department shall not fund administrative expenses in excess of 10 percent of the approved loan amount unless the sponsor can demonstrate to the department's satisfaction that costs in excess of this limitation are the result of expenses for architectural, engineering, accounting and legal services, which would otherwise qualify for funding as consultant services pursuant to section 8114(b)(7) or (c)(12), as applicable.

Cal. Code Regs. Tit. 25, § 8119

1. New section filed 12-14-90 as an emergency; operative 12-14-90 (Register 91, No. 11). A Certificate of Compliance must be transmitted to OAL by 4-15-91 or emergency language will be repealed by operation of law on the following day.
2. Repealed by operation of law on 4-16-91.
3. New section filed 7-19-91 as an emergency; operative 7-19-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 11-6-91 or emergency language will be repealed by operation of law on the following day.
4. New section refiled 11-15-91 as an emergency; operative 11-15-91 (Register 92, No. 16). A Certificate of Compliance must be transmitted to OAL 3-16-92 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 11-15-91 order transmitted to OAL 12-12-91 and filed 1-13-92 (Register 92, No. 16).

Note: Authority cited: Sections 50406(n), 50884 and 50895, Health and Safety Code. Reference: Section 50881.5(f), Health and Safety Code.